What Is a Closing Protection Letter (CPL)?
Protecting your transaction from the inside out.
When you’re buying, selling, or refinancing a home in Arizona, there are many moving parts — and trust is essential. While title insurance protects you from hidden issues with the property’s past, a Closing Protection Letter (CPL) adds another layer of security for the closing process itself.
What Is a CPL?
A Closing Protection Letter is a legal document issued by a national title insurance underwriter. It’s essentially a written promise that holds the title company accountable if certain things go wrong during closing.
What Does a CPL Protect Against?
A CPL protects the lender, and in some cases the buyer or seller, if the title or escrow company:
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Fails to follow the written closing instructions.
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Commits fraud or dishonesty during the transaction.
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Mishandles or misappropriates funds in escrow.
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Makes errors that cause a loss related to closing.
Think of it as a safety net for the escrow process — making sure the title company handles your transaction with accuracy, honesty, and care.
Who Benefits from a CPL?
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Lenders – They are the primary beneficiaries, ensuring their funds are handled properly.
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Buyers & Sellers – In some cases, the CPL can protect you if the title company fails to follow instructions or mishandles funds.
Why a CPL Matters in Arizona Real Estate
Real estate transactions in Arizona often involve large sums of money, multiple parties, and complex instructions. Even the smallest mistake or breach of trust can cause delays, disputes, or financial loss. A CPL gives you an added layer of confidence that your transaction is being handled properly.
How to Get a CPL
Your lender typically requests the CPL directly from the title company as part of the closing process. If you’re a buyer or seller, you can also request a copy for your records so you understand the protections in place.
✅ Bottom Line: A Closing Protection Letter ensures that your lender — and sometimes you — are protected against errors, fraud, or failure to follow instructions during escrow. It’s a behind‑the‑scenes safeguard that keeps your Arizona real estate transaction on track.
Arizona Premier Title is committed to transparent, secure, and accurate closings. Our team works closely with national title insurance underwriters to make sure every transaction is protected from start to finish.